The New Albany-Floyd County Consolidated School Corporation board approved a budget for 2027 amid financial pressure from state property-tax changes. The district's spending plan comes as Indiana public schools face projected property-tax revenue losses under the new law.
The News and Tribune reported NAFCS's 2027 budget approval.
How the Property-Tax Cap Hits the Bottom Line
Senate Enrolled Act 1, signed into law in April 2025, caps local property tax revenue growth by expanding homeowner tax credits and changing how net assessed value is calculated, according to WFYI. The law is expected to put pressure on public-school property-tax revenue.
Recent legislation is projected to reduce assessed values, adding uncertainty to school-district budgeting. The district has also considered a proposed capital bond program.
The local numbers reflect a much larger statewide pattern. A nonpartisan Legislative Services Agency analysis cited by the Indiana Coalition for Public Education estimates Indiana public schools will lose $744.4 million in property tax revenue between 2026 and 2028, with the single-year drop reaching $336 million in 2028. NAFCS's experience echoes what Hoodline reported in September about superintendents statewide blaming SEA 1 for forcing teacher and staff cuts, and mirrors cost-cutting already underway at Lowell's Tri-Creek Schools, which plans to end all bus service and cut K-8 sports by 2028.
Enrollment Shifts and a Cautious Outlook
Average daily membership is projected to decline roughly 0.5% this fall.
Street said NAFCS evaluates expenses, staffing, rightsizing needs, classroom ratios and enrollment numbers every year, and said the district must now be more cautious than in the past as it continually reassesses its needs.
According to the National Education Association, Indiana's average teacher salary was $61,661, ranking 38th nationally and below the averages in Illinois, Michigan, Ohio and Wisconsin.
Budget Hearings
The budget process included public hearings.
Floyd County voters approved an $87 million capital referendum in 2016 that funded construction of Green Valley and Slate Run elementary schools along with modernizations at Prosser Career Education Center.
